Cesc Ltd · NSE:CESC
Cesc — Investor Presentation (November 2018)
51 slides from Cesc's investor presentation, November 2018
Slide 1: CESC Limited - Powering India since 1899
CESC Limited Powering India since 1899 1
Slide 2: Disclaimer
This presentation has been prepared by and is the sole responsibility of CESC Limited (the “Company”). By accessing this presentation, you are agreeing to be bound by the trailing restrictions. This presentation does not constitute or form part of any offer or invitation or inducement to sell or iss
Slide 3: RP-Sanjiv Goenka Group
=>. RP- Sanjiv Goenka —wPF Group Growing Legacies GROWING LEGACIES 1S OUR CULTURE. of CESC _ICML,. | SURYA Gine _®... con bane mies firstsource Leauminnoned aevomen et CMTE www.rp-sg.in Fol £) Ed You Ture ww WOODLANDS MOBSTTAC
Slide 4: RP- Sanjiv Goenka Group
RP- Sanjiv Goenka Group RP-Sanjiv Goenka Group is a well known diversified business house in India RP-Sanjiv Goenka Group has interests across diverse business sectors - Power & Natural Resources, Carbon Black, IT & Education, Retail, Media & Entertainment and Infrastructure Major Companies Busi
Slide 5: CESC Corporate Restructuring - Transaction Overview
CESC Corporate Restructuring - Transaction Overview The Board of Directors of CESC has approved a business restructuring scheme in their meeting held on 18th May 2017 and the Company also submitted the scheme with the Stock Exchanges on 21st July 2017 The business restructuring Scheme aims to si
Slide 6: Power Business Generation & Distribution
POWER BUSINESS GENERATION & DISTRIBUTION 6
Slide 7: Operational Facilities - Overview
OPERATIONAL FACILITIES -OVERVIEW Renewables Kolkata Distribution Business Independent Power Plants 600 MW thermal power plant in Coal Mining, Power Generation & Chandrapur, Maharashtra Noida Distribution Distribution (Project cost Rs. 38 billion) -1125 MW thermal power plant - 567 sq km area 600 MW
Slide 8: Overview of CESC - Kolkata Distribution Business
Overview of CESC - Kolkata Distribution Business India’s oldest electricity utility, operating since 1897- 100+ years of experience Power Map Engaged in Coal mining, Generation and Distribution of electricity to city of Kolkata & adjoining areas Almost entire energy requirement met from own /
Slide 9: Awards & Recognitions
Awards & Recognitions Dun & Bradstreet Infra Awards 2017 – Best Distribution Company Budge Budge TPP Awarded as the 8th CII national HR excellence awards Gold Winner at the 2017 – Significant Global Environment achievement in HR Award 2016 Recent Recognitions CBIP Award CII-Exim Bank 2018 Award for
Slide 10: Improving Consumer Experience with superior customer service
Web Services Mobile Apps Improving Consumer Experience with superior customer service SMS Services 24x7 Call Centre Branding Communication – Web chat etc Enriching Consumer Experience Social Media 10
Slide 11: CESC
CESC S1— Ap-saniiv Goenka =HPX Grove Limiteo ‘orig Sw
Slide 12: CESC Standalone Financials
CESC Standalone Financials PBT (Rs. Bn) Long Term Debt / Equity Ratio 10.99 11.02 10.46 0.70 0.65 8.83 0.6 0.60 0.60 8.25 0.60 7.73 6.93 0.5 [VALUE]0 6.14 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 Financial nos. from FY’16 compiled under IND AS FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 EPS (Rs.) Dividen
Slide 13: 600 MW Haldia Thermal Power Project, West Bengal
600 MW Haldia Thermal Power Project, West Bengal To meet the growing need of CESC consumers - new 600 MW (2x300) TPP commissioned in Haldia, near Kolkata in 2015 Fully regulated project approved by WBERC, entire 600 MW power being supplied to CESC, PPA approved by WBERC Project include 80 kms
Slide 14: 600 MW Chandrapur Thermal Power Project, Maharashtra
600 MW Chandrapur Thermal Power Project, Maharashtra Constructed in Chandrapur, near Nagpur with 2x300 MW configuration, commissioned in 2014 Project cost of Rs. 38 bn funded at 75:25 debt equity ratio Fuel Supply Agreement signed with Coal India Ltd BTG supplied by Shanghai Electric, BoP un
Slide 15: Noida Power Company Limited
Noida Power Company Limited • Started operations in 1993; JV with Greater Noida Industrial Development Authority • Area: 335 sq.km. (equivalent to Mumbai), 118 villages fully electrified • Population: 7 lakh No. of consumers: 82,231 • Peak Power Demand: 350 MW • Units sold: 1668 MU (2018) • Power Pr
Slide 16: CESC
CESC S1— Ap-saniiv Goenka =HPX Grove Limiteo ‘orig Sw
Slide 17: Distribution Franchisee-Kota, Bharatpur and Bikaner
Distribution Franchisee-Kota, Bharatpur and Bikaner Particulars Kota Bharatpur Bikaner (10.5 months) Area (Sq. Km.) 176 50 155 Population (Nos. Lakh) 11.76 2.52 6.44 Consumer Count (Nos. Lakh) 2.28 0.63 1.79 Energy Input (Million Units) 1223 265 645 Units Sold (Million Units) 889 214 509 Dom. = 48%
Slide 18: Key Interventions after Takeover
Key Interventions after Takeover Soft value enhancement for Loss Reduction Initiatives Network Reliability customers • Defective meters replaced • Centralized Command Station • New connection within a day • Regular billing for consumers • Diesel Gen Sets on stand-by for • Outage calls attended in <1
Slide 19: Visible Changes-Distribution Franchisee
Visible Changes-Distribution Franchisee 33kV GSS after Maintenance Customer Help Desk New Connection Camps 19
Slide 20: Renewables
Renewables Dangri, Mahidad, Rajasthan Nipaniya, Rojmal, Neeravi, Gujarat- Total -Wind M.P.-Wind Gujarat T.N.- Solar Wind Installed Capacity 24 26 36 70 18 174 Wind Farm Site: (MW) Rojmal Gujarat. COD Mar’13 Dec’14 Mar’16 Mar’17 Jan’16 • One of the best portfolios in terms of tariff and returns • One
Slide 21: Crescent Power
Crescent Power • Generating Station: 40 MW AFBC based power plant • Plant set up at CESC’s Sarisatolli coal mine pit in West Bengal • Power sold to the grid • Plant uses washery rejects, with Carbonaceous Shale as fuel • Connected to State Transmission Utility Grid Substation through 14km long Trans
Slide 22: Retail
Limiteo RETAIL
Slide 23: Future Of Organized Retail
Future Of Organized Retail FY16 Share of Retail % ORP % ORP % Organized Retail Growth in India(US $ billion) (FY16) (FY16) (FY20P) Food and Grocery 67 3 5 CAGR: 24.5% 180 Apparel & Accessories 8 22 33 Jewellery & Watches 8 27 30 CDIT 6 25 32 Home & Living 4 10 12 60 Pharmacy & Wellness 3 10 12 Footw
Slide 24: Spencer's Retail: Profile
Spencer’s Retail: Profile Rs.2100+ Cr. food-first, Multi-Format Retailer. 137 stores spread over 30+ cities and about 1.2 mn.sft driving more than 4 Cr.+ Footfalls. Private label program across Food, Fashion, Home and General Merchandising. Planning to roll out around 40 Large Stores over ne
Slide 25: Sales Mix
Sales Mix HWP 10% Staples 19% FMCG incl Liquor 49% E&E 4% Apparel 4% HWP Staples E&E F&M and Bakery Apparel Liquor F&V F&V 7% FMCG 6% Food has highest share ~ 82% 25
Slide 26: Store Footprints
Store Footprints 63 Large Stores & 74 Small Stores across India “Large Format Stores” defined as clear focus area 15-20 new stores to be opened annually New stores to be opened in selected geographies Small stores to continue • Profitable at store level • Extension to Large stores 26 26
Slide 27: Building Blocks for Spencer's
Building Blocks for Spencer’s Conveniently located – in the existing Geography- preferably through compact hyper markets Serve customer through Omni-channel – Offline & Online -increase frequency Increase strength in Non-Food categories especially Apparels Offer the best in-store experience through
Slide 28: Private Label Program
Private Label Program • 1400 +SKUs across categories; Apparel, Staples, FMCG, E&E & HWP • Clear Role Matrix - Market share Enhancer /Margin Builder /Differentiator /Promotional • Tiered program to cater varying customer needs. National Brand Equivalent Opening Price Point 28 28
Slide 29: Spencer's Smart Rewards- Raising The Bar to Next Level
Spencer’s Smart Rewards- Raising The Bar to Next Level Target to reach CRM contribution to sale at 70% by FY19 • Spencer’s generates over 65% sales from its base of over 28 lacs Smart Reward (SR) members. • Average Bill Value of a SR member is more than double of a regular customer. • Increase enrol
Slide 30: Omni Channel Strategy
Omni Channel Strategy To Increase Spencer’s Share in Consumers Grocery Basket Out of 12 grocery shopping trips per month, hypermarket gets 2 trips (A C Neilsen Survey). To increase the Trip Mission of the same customer and thereby increase in share of Wallet, www.spencers.in launched. • True Omni ch
Slide 31: Strengths of www.spencers.in
Strengths of www.spencers.in • Cost of customer acquisition is very low. • Existing offline Spencer’s stores are acting as distribution Gurgaon Noida centers to serve the order so limited logistics cost. Delhi Lucknow • Very encouraging response from the shoppers. Kolkata • Higher average bill value
Slide 32: Operating Performance
Operating Performance Sales/ sqft (Rs./month) SSSG (%) 16.1% 14.3% 1576 1528 1595 1452 9.9% 1349 9.0% 8.4% 8.8% 1305 1226 5.3% 1060 -1.1% FY`12 FY`13 FY`14 FY`15 FY`16 FY`17 FY`18 FY`19(H1) FY`12 FY`13 FY`14 FY`15 FY`16 FY`17 FY`18 FY`19(H1) Average Bill Value (Rs./bill) Number of Bills (Lakhs) 723
Slide 33: CESC Ventures
RP- Group CESC VENTURES Limiteo
Slide 34: Company Overview
Company Overview FMCG Bowlopedia Restaurants Firstsource “Quest” Solutions Ltd. Shopping :Business Mall in Process Kolkata with Management 4,15,000 company in sq.ft. retail India area 34
Slide 35: Firstsource Solutions: What we do
Firstsource Solutions: What we do We work across… To help our clients… Drive Improve customer Telecoms & experience Healthcare transformation Media BFSI & Other Maximise Optimise costs Banking, Insurance, Industries revenues Mortgages Retail, Travel, Utilities 35
Slide 36: Our global footprint
Our global footprint 4 countries 3 centres 19,000 people 9 + Right-shore: B2B2C Business Model UK USA 8 centres 18 centres Philippin • Belfast • Amherst, NY • Kingston, NY es • Cardiff (2) • Miami, FL • Louisville, KY (3) • Derby India 2 centres • Durham, NC • Rockford, IL • Derry • Gahanna, Ohio •
Slide 37: Solutions that solve business challenges
Solutions that solve business challenges Dp cn 08 Ati Lo Robotic Integrated : Analytics NPS Revenue Process Customer & Insights Predictor Maximiser Automation Contact ' ' ' Management | | Use speech analytics - . ' ' and in-depth insights ' Increase efficiency, Optimise operations, — Glean deeper to
Slide 38: Financial Performance-FY2018
Financial Performance-FY2018 Operating EBIT 4,500 3,790 3,930 13% 4,000 12% EBIT Margin 3,500 11% 3.7% Y-o-Y Rs. Mn 3,000 10.7% 10% 2,500 11.1% 9% 2,000 8% 1,500 7% FY2017 FY2018 PAT 4000 3,265 2,800 14% PAT Margin 3000 12% 16.6% Y-o-Y Rs. Mn 2000 10% 8% 1000 9.2% 6% 7.9% 0 4% FY2017 FY2018 38
Slide 39: Quest-Overview
Quest-Overview Built on 3 acres of land in Kolkata, this is the 1st Luxury Mall of East India. Presently the mall is witnessing strong footfalls of 1 mn+ per month 4,15,000 sq.ft retail area, 900+ car parking Houses volume retailers like Spencer’s, Starmark, Lifestyle as well as internationa
Slide 40: Mall: Key Features
Mall: Key Featuress DEVELOPER PRIME LOCATION Situated close to Park Circus Quest Properties India Ltd crossing –heart of CBD ARCHITECT LOCATION 33, Syed Ali Avenue, International Retail Kolkata Architect -RTKL 7 CUSTOM ZONED SHOPPINGLEVEL shopping levels spreadover Basement + G +5 0.4 Million sft.(G
Slide 41: Brands at Quest
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Slide 42: FMCG
ip Cesc FMCG
Slide 43: Emerging Indian food trends indicate opportunity for guilt-less snacking
Emerging Indian food trends indicate opportunity for Our guilt-less snacking proposition Move to ‘Real foods’ with Healthy, Natural ingredients Preference for Protein rich foods Consciousness about and backlash on ‘Sugar & Fat content’ Traditional “Dieting” is slowing down Choices being driven by li
Slide 44: Too Yumm!!
Too Yumm!! Forayed into FMCG business with packaged food business ’ under brand ‘Too Yumm!!’ in April 2017 Launched 5 Products : Foxnuts, Veggie Stix, Multi Grain Chips, Quinoa Puff & Karare Very rich in Protein & Fibre and low in Fat National Brand: Distributed across 1.25 lac outlets in GT
Slide 45: ip Cesc
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Slide 46: E-vita
E-vita Acquired 70% stake in Rajkot based “Apricot Foods Pvt. Ltd”. Manufacture and sale of Packaged snack food under the brand name of “e‐vita” Giving tough competition to bigger brands like Lays and Balaji in e-Vita’s stronghold like interior regions of Gujarat and Rajasthan Lines and Rang
Slide 47: Prscestrecrer
Prscestrecrer CESC pcesc “= RP- Sanjiv Goenka Group = nial
Slide 48: Bowlopedia Restaurants
Limiteo mies Bowlopedia Restaurants Bow! fe Restaurants India Ltd. * FRESHLY GRILLED SANDWICHES © 48
Slide 49: Waffle Wallah
Waffle Wallah Waffle Wallah – 1st brand in India to serve innovative sweet waffles Serves (Sweet Waffles | DIY Waffle | All Day Breakfast |Beverages) No. of Outlets: 19 (Kolkata-10, NCR-9) Launching 30 new stores during FY19 Formats: Parlour (200 to 350 sq.ft.), Kiosk (60-80 sq.ft.), E-Car
Slide 50: Bombay Toastee
Bombay Toastee Bombay Toastee -1st QSR serving wholesome comfort food, on the go, in a street style yet hygienic environment. Serves 60 unique combinations Serves - wholesome, Experimental, value for money, comfort food (Toasties | Sandwiches | Maggi | Rolls | Burger | Fries | Desserts | Beverag
Slide 51: Thank You
RP- Group THANK YOU Limiteo